The price of oil fell by about 1% after rising by about 6.5% in the previous two sessions amid expectations that OPEC+ may choose to deepen supply cuts in an attempt to reverse the recent decline in prices. The fall in prices was due to the fact that short-term speculators took profits after several indicators were overbought on technical charts.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, was set to consider whether to make additional oil supply cuts when it meets on Nov. 26.
Ahead of the OPEC meeting, investors' attention will be focused on the weekly data on oil reserves in the United States, which will be published on Wednesday. Nationwide crude inventories have expanded for the past four weeks to hit the highest since August. Experts expect that oil and gasoline stocks rose again last week, while distillate stocks declined.
The further fall in oil prices was limited by the negative dynamics of the US currency. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.06% to 103.37, reaching its lowest level since August 31.
Oil prices have fallen by about 16% since the end of September, as oil production in the United States, the world's largest producer, remained at an all-time high, while the market was concerned about the prospects for demand growth, especially from the world's largest oil importer, China. Traders were also watching for signs of a decline in demand due to a possible recession in the US in 2024.